Gavin Newsom Proposes Expanding California’s Movie and TV Tax Credit to at Least $1 Billion

California Gov. Gavin Newsom announced a proposal to expand the state’s Film and TV Tax Credit Program from $750 million to at least $1 billion annually. The move comes just ahead of the 2026 midterm elections and aims to bolster California’s entertainment industry against growing competition from other states and countries. Newsom’s office said the expansion would make the program more competitive and help retain productions that might otherwise film elsewhere, supporting tens of thousands of jobs across the state. The proposal would also broaden eligibility to include more types of productions and adjust the credit structure to attract larger budget films and streaming series. Industry leaders have long argued that California’s incentives lag behind places like Georgia, New York, and the United Kingdom, which offer more generous rebates. If approved by the legislature, the expansion could take effect as early as 2026. The announcement signals a renewed push by state leaders to keep Hollywood’s economic engine running in its historic home.